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By Bloomberg

European stocks fell with U.S. equity-index futures amid weaker-than-forecast manufacturing from China to Europe. Industrial metals dropped while bonds rose and New Zealand’s dollar declined the most among major currencies.

The Stoxx Europe 600 Index dropped 0.6 percent at 7:25 a.m. in New York and Standard & Poor’s 500 fell 0.2 percent. The yield on 10-year German bunds slid three basis points to 0.14 percent and the rate on Treasuries decreased to 1.96 percent. Chinese shares in Hong Kong declined for the first time in three days. The kiwi weakened 1.5 percent against the dollar, and the pound retreated after U.K. retail sales missed analysts’ estimates. Aluminum dropped the most in a month.

A Chinese manufacturing gauge dropped to the lowest in 12 months and a purchasing managers index for the euro region unexpectedly slowed. The data signaled Asian stimulus measures and European Central Bank President Mario Draghi’s quantitative- easing program have yet to take hold. U.S. new home sales probably fell in March while factory output was unchanged this month, economists said before reports on Thursday.

“This serves as a gentle reminder that although Draghi is pumping money into the economy, it will take a bit of time to feed through,” said Ben Kumar, who helps oversee about $12 billion at Seven Investment Management in London. “Earnings expectations had gone a bit far -- consumers have not had enough time to feel the recovery and drive corporate profits.”

Dow Chemical Co., General Motors Co. and Microsoft Corp. are among 54 S&P 500 companies reporting earnings on Thursday.

Spending Slowdown

Ericsson AB led European technology shares lower after the network-equipment maker’s profitability missed analysts’ estimates amid a slowdown in spending by North American operators. The stock tumbled 13 percent. Nokia Oyj lost 2.5 percent and Alcatel-Lucent SA fell 2.9 percent.

Novartis AG rose 1.7 percent and SEB AB advanced 2.2 percent after reporting better-than-forecast quarterly profit. Pernod Ricard SA gained 2.3 percent and Michelin & Cie. climbed 5.3 percent as they posted an increase in quarterly sales. Europe’s largest tiremaker also said it will spend 750 million euros ($801 million) on a share buyback program.

S&P 500 E-mini futures expiring in June slipped after the index advanced 0.5 percent on Wednesday, closing within 0.5 percent of a record. The Nasdaq Composite Index climbed to its highest level since 2000, with a rally led by social-media companies.

Facebook Falls

Facebook Inc. dropped 2 percent in early New York trading after reporting sales that missed analysts’ estimates for the first time since 2012. Qualcomm Inc. fell 4 percent after forecasting fiscal third-quarter sales and profit that may fall short of projections. EBay Inc. climbed 6 percent as its quarterly profit forecast topped estimates.

About 78 percent of the S&P 500 companies that have reported earnings this season have beaten analysts’ profit projections, while 48 percent topped sales estimates.

“Underlying revenues remain disappointing as they’re not helped by the ever stronger U.S. dollar,” said Lex Van Dam, a fund manager at Hampstead Capital LLP in London. “The rest of the world is doing its best to provide liquidity but consumer demand remains disappointing. The stock market is reflecting a lack of investment alternatives as opposed to a booming economy.”

The Hang Seng China Enterprises Index, a gauge of mainland shares listed in Hong Kong, fell 1.3 percent while the Shanghai Composite Index closed 0.4 percent higher.

China’s so-called flash purchasing managers index from HSBC Holdings Plc and Markit Economics dropped to 49.2 for April, the lowest since April last year, underscoring a slowdown that prompted China’s central bank to cut banks’ reserve requirements by the most since 2008.

Economists had predicted the manufacturing purchasing managers’ index would come in at 49.6 for April, matching March’s reading. Levels below 50 signal contraction.

“The fundamental economy is not improving” in China, said Helen Lau, a metals and mining analyst at Argonaut Securities Ltd. in Hong Kong. “It is a little worrying. We’re close to the bottom. Before that happens, the government should continue with stimulus until there is a rebound.”

The kiwi slipped to 75.58 U.S. cents and touched its weakest intraday level since April 15. Reserve Bank of New Zealand Assistant Governor John McDermott said that with inflation near zero, policy makers would need to be confident in “a substantial increase” in price levels before any tightening was considered.

Aluminum fell 1.4 percent and zinc dropped as much as 1.3 percent.

West Texas Intermediate crude for June delivery dropped 0.2 percent to $56.05 a barrel. Brent oil was little changed at $62.74 a barrel.

A U.S. government report on Wednesday showed record oil inventories swelled further even as fewer active drill rigs led to a drop in output. Half of the 41 fracking companies operating in the U.S. will be dead or sold by year-end because of slashed spending by oil companies, an executive with Weatherford International Plc said.